When you hear word ERP, what do you think of? Most probably some famous software company names. And we have always associated ERP Implementations to Softwares only. Truth is, ERP is not only about software or technology but also about business strategy. The core of ERP is RESOURCE PLANNING, and ERP Software just makes that easy for businesses. Now each business is unique and operates in a different way although there are similarities in legal structures, processes, operating methods etc.
I strongly believe that every business has personality, much like human beings.
Therefore, utilization of ERP can differ from business to business, however, there are 7 benefits you can expect from successful ERP implementation in your business.
Increases Productivity
Computer was invented with an intention to automate things so was ERP systems. The most common benefit of ERP system implementation in any business is improving productivity by automating tasks.
ERP systems automate workflows, store data at the centralized repository, exchange information across the company and provide accurate reports as and when needed resulting in improved productivity of your employees.
People do not need to go anymore through files to search records or spend hours in preparing manual reports which typically has higher chances of errors and discrepancies.
Streamlines Communication
Precise & faster communications are essential for business success, be it interactions among the people working in your business or externally with your customers and vendors. This is another key advantage of implementing ERP system.
Since ERP system has a central database for all information your business is processing, it much easier to exchange this information precisely with various stakeholders in a timely manner.
Also, whenever your employees are talking to external parties they can clearly communicate and keep track of conversations. That results in building stronger relationships.
Reduces Cost
In today’s highly challenging business environment, making profits has become tough for small & medium size business. Especially when you are contending against muscular competitors.
Implementing ERP System will help you, monitor, & reduce costs in your organization. You may not be able to reduce all costs, but you can certainly control some. With the help of information processed by ERP software you will be able to negotiate better pricing with vendors, avoid stocking slow moving goods in your warehouses to reduce capital expenditures, or even control overheads in your manufacturing or distribution operations.
ERP system also tracks your spending against budgets which are usually set at the beginning of financial year. Having Budget vs Actual information available in real time can be a huge advantage when it comes to saving money.
Streamlines Workflow
Your business doesn’t have to be chaotic all the time, all though there are situations where we can’t avoid chaos.
ERP system helps you to streamline your workflows so that you don’t have to worry about messy situations. ERP systems are process driven therefore you can decide & set sequence of actions to take place after certain events. For example, your prospective customers ask to send a quotation for one of your products. Email has landed in sales coordinators mailbox, how would you want this internal process of creating, approving and sending quotation should take place.
Not having a proper process and ERP system to track the workflow, is surely going to increase the chance of errors eventually causing muddles.
Improves Reporting
Every business has unique reporting needs to monitor business health and make strategic decisions. Without a centralized ERP system and proper process of storing information, it’s quite difficult to get reports in real time. Even worse, when reports are prepared manually from different data sources, chances of errors are likely higher which means you may not be even making decisions based on the right data.
ERP system helps business to get accurate reports in real time. Today’s modern ERP Software’s provide intuitive graphical reports which allow slicing and dicing of information and view reports dynamic formats.
Help in Increasing Revenue
Don’t get me wrong, ERP systems don’t make direct money for your business, however, it enables the opportunities to increase your revenue.
ERP systems help you track history of sales upon which you can plan your strategies. Also, if you produce and sell seasonal products, ERP system can tell you which products are selling most in any given season.
It can also help you with finding your best customers, top salespeople and growing territories so that you can be more strategic in your sales approach and keep winning in the market.
Improves Cashflow Management
Unarguably cashflow management is the most common challenge faced by Small & medium size companies across the globe.
Nearly 82% of closed businesses reported that cash flow was the main reason for closing down the shop.
ERP systems can help you stay in control of your cash flow and save your business. With help of software, you would be able to closely monitor your receivables and collect money on time from your customers.
Also, you can see where your spending most and how it can be controlled. Leaving more working capital for business will give you peace of mind and leave you free to grow your business.
These are some of the common benefits of ERP systems most businesses can enjoy. With proper ERP implementation strategy and selection of right software & implementation partner, your business can significantly benefit from invaluable tools offered by ERP systems.
Evomatiq is on a mission to help small & medium size businesses to adopt innovative software solutions to solve most common business challenges and support business growth. If you have any questions about business Softwares, contact us today.
Also, if you have any thoughts or questions, please leave them in comments.
29 Apr 2019